Mubadala Capital, the asset management company wholly owned by Mubadala Investment company “Mubadala”, announced the successful closure of the second major investment fund “Special Opportunities Fund” in Brazil, the total liabilities of which have been attracted in excess of 710 million dollars from a variety of international investors.
Among the investors who participated in these commitments were a prominent pension fund, family offices, commercial enterprises, private equity funds and companies specializing in asset management coming from North America, Europe, the Middle East and Asia.
“The completion of our second major investment fund in Brazil is the culmination of a ten-year track record of work and investment in Brazil, during which our team has gained great experience in evaluating and implementing complex investments against the background of not always favorable conditions within the macroeconomic landscape,”said Oscar Valgren, chief investment officer, head of investment affairs in Brazil at Mubadala Capital.
The second private Opportunity Fund in Brazil will continue its strategy of focusing mainly on investing and acquiring controlling ownership interests in mature companies that face challenges or crises but have promising potential, Mubadala said in a statement.
This strategy allows the fund to acquire these companies at attractive prices from the very beginning, which provides it with a margin of safety when closing the deal by reducing the fund’s vulnerability to economic changes in Brazil, including the devaluation of the currency, while retaining opportunities to benefit positively from economic growth.
The fund is looking for opportunities to achieve positive value immediately after the change of ownership of the company, which usually eliminates any complications and paves the way for achieving strong risk-balanced returns for investors, according to the company.
Abu Dhabi-based Mubadala Capital is the first Sovereign Investment Fund to manage assets on behalf of other institutional investors. The company manages assets and investments worth a total of about USD 20 billion through its own projects, as well as investments managed on behalf of other investment institutions, in a variety of areas including private equity, solutions, start-up investments and investing in Brazil.
